Co-op raises rates for 54,000 borrowers

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A Co-operative bank sign above a branch in NorthamptonDarren Staples/Reuters

Leah Milner

Last updated at 1:14PM, April 2 2012

The Co-operative Bank is to raise the standard variable rate (SVR) paid by
54,000 existing mortgage customers from 4.24 per cent to 4.74 per cent next
month, adding £57 per month to the cost of a typical £200,000 home loan.

The bank has blamed increases in the cost of funding for the rise in its SVR,
which is the rate that borrowers pay after a fixed rate or discounted deal
comes to an end.

The increase will also affect customers who took out mortgages through the
former building society Britannia, which is now part of The Co-operative
Bank. It follows